Teens

lesson threethe art of budgeting

presentation slides

04/09

the budgeting process

phase 1: Assess your personal and financial situation (needs, values, life situation).

phase 2: Set personal and financial goals.

phase 3: Create a budget for fixed and variable expenses based on projected income.

phase 4: Monitor current spending (saving, investing) patterns.

phase 5: Compare your budget to what you have actually spent.

phase 6: Review financial progress and revise budgeted amounts.

teens – lesson 3 - slide 3-A

goal-setting guidelines

teens – lesson 3 - slide 3-B

well-written personal and financial goals SHOULD:

• be realisticA student working part-time is not likely to be able to afford a new car every couple of years.

• be specific“I want to save $5,000 for a down payment to buy a house.”

• have a timeframe“I want to pay off my credit card within the next 18 months.”

• state the action to be taken“I want to start an automatic deposit savings account with monthly withdrawals from mychecking account.”

setting up and maintaining a budget

teens – lesson 3 - slide 3-Ca

income budget actual difference

Job #1 $ $ $

Job #1 $ $ $

Other $ $ $

total monthly income

$ $ $

expenses budget actual difference

fixed regular expenses

Rent $ $ $

Car insurance $ $ $

Car payment $ $ $

Credit card $ $ $

fixed irregular expenses

Savings $ $ $

Food $ $ $

Utilities $ $ $

setting up and maintaining a budget (continued)

teens – lesson 3 - slide 3-Cb

expenses budget actual difference

transportation

Bus fare $ $ $

Gas and oil $ $ $

Parking and tolls $ $ $

Repairs $ $ $

other

Medical expenses $ $ $

Clothing $ $ $

Entertainment $ $ $

Household items $ $ $

Personal items $ $ $

Tuition $ $ $

School expenses $ $ $

total monthly expenses

$ $ $